NEWARK, NJ - July 19, 2002 - Net2Phone, Inc. (Nasdaq: NTOP), the leading provider of Voice over IP (VoIP) services, today announced that it has appointed Stephen Goldsmith to its Board of Directors, replacing Gary Rieschel.

While serving two terms as Mayor of Indianapolis from 1992-1999, Mr. Goldsmith reduced government spending, cut the city’s bureaucracy, eliminated counter-productive regulations, and identified more than $400 million in savings. He reinvested the savings in the transformation of downtown Indianapolis that has been held up as a national model.

For almost 20 years, Mr. Goldsmith has helped Indianapolis move to and stay at the leading edge of government technology. In eight years as Indianapolis’ Mayor and in 12 years before that as Marion County Prosecutor, he moved technology into every corner of the established bureaucracy. In 1997, Indianapolis was awarded the “Oscar” of the Internet--the Global Information Infrastructure Award. In October 1998, Government Technology magazine named Indianapolis’ city Web site “Best of the Web” for local government. In the fall of 1999, The New York Times profiled Indianapolis’ Web site as a model government Internet presence.

Mr. Goldsmith currently serves as Special Advisor to President Bush for faith-based and not-for-profit initiatives and served as chief domestic policy advisor to the Bush campaign.

Mr. Goldsmith also serves as Senior Vice President for e-Government and Strategic Initiatives with Affiliated Computer Services (NYSE: ACS), Faculty Director for the Innovations in American Government program at Harvard’s Kennedy School of Government, and as Chairman of the Corporation for National and Community Service.

“Through Steve’s appointment, Net2Phone retains an independent board. As the mayor of one of the largest American cities, Stephen learned to tighten the reins and cut costs while still driving the economy. These lessons will add value to our company,” said Stephen Greenberg, CEO of Net2Phone.

Founded in 1995, Net2Phone is a leading provider of voice services over IP networks to consumers and businesses worldwide. With millions of users around the world, Net2Phone enables toll-quality calls between computers, telephones, and broadband devices utilizing IP networks. Recognized as the first company to bridge the Internet with the public switched telephone network, Net2Phone has routed billions of minutes of traffic over its award-winning network. Traded on the NASDAQ under the symbol NTOP, Net2Phone’s strategic partners and investors include Liberty Media Corporation (NYSE: LMC.A; LMC.B), AT&T Corporation (NYSE: T), and IDT Corporation (NYSE: IDT; IDT.B). For more information about Net2Phone's products and services, please visit www.net2phone.com <http://www.net2phone.com>.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward- looking statements involve risks and uncertainties and actual results could differ materially from those discussed in the forward-looking statements. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Factors which may affect the Company's results include, but are not limited to, the Company's ability to expand its customer base, the Company's ability to develop additional and leverage its existing distribution channels for its products and solutions, dependence on strategic and channel partners including their ability to distribute the Company's products and meet or renew their financial commitments, the Company's ability to address international markets, the effectiveness of the Company's sales and marketing activities, the acceptance of the Company's products in the marketplace, the timing and scope of deployments of the Company's products by customers, fluctuations in customer sales cycles, customers' ability to obtain additional funding, technical difficulties with respect to the Company's products or products in development, the need for ongoing product development in an environment of rapid technological change, the emergence of new competitors in the marketplace, the Company's ability to compete successfully against established competitors with greater resources, the uncertainty of future governmental regulation, the Company's ability to manage growth, obtain patent protection, and obtain additional funds, general economic conditions and other risks discussed in this Report and in the Company's other filings with the Securities and Exchange Commission. All forward-looking statements and risk factors included in this document are made as of the date hereof, based on information available to the Company as of the date thereof, and the Company assumes no obligation to update any forward-looking statement or risk factors.